Supermarket Income REIT PLC (LSE:SUPR, OTC:SUPIF) said it is “ready to take advantage” of any opportunities despite the economic headwinds as it posted a 35% increase in full-year profits.
The real-estate investment trust posted pretax profits of £110.2mln for the year-end 30 June, up from £82mln previously, while annualised passing rent was up 34% to £77.6mln.
While the impact of Covid has receded, the group said it now faces more macroeconomic headwinds in the form of higher interest rates, geopolitical uncertainty and a potential recessionary environment.
However, it insisted it is well positioned to continue to take advantage of opportunities that may come thanks to its inflation-linked leases and tenant covenants which operate in the non-discretionary spending sector.
“At a time of considerable unpredictability and uncertainty especially for our economy, we believe our portfolio of targeted, sector-specific real estate assets will continue to deliver stable, long-term, and growing income to our shareholders,” said chief executive Nick Hewson.
Earnings from operational activities (EPRA) earnings per share (EPS) was 5.9p, a 5% increase, while the group achieved its full-year dividend target of 5.94p.
The value of its direct portfolio increased by £423.2mln and is now worth £1.57bn, with a net initial yield of 4.6%.
EPRA net tangible assets soared 64% to £1.4bn, while in the post period the group purchased a further five assets for £216.1mln.
Additionally, the group said it agreed on a price of £1.04bn with Sainsbury’s as part of the joint venture reversion portfolio for 21 stores, while agreeing on 15-year leases on four other locations.